1. October 22, 20041 Atlas Copco Group Q3 Results October 22, 2004

2. 2 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

3. October 22, 20043 Q3 - Highlights  Improved market position  Continued volume growth  Record profit –Operating margin above 15% –Improvement in all business areas, record profit in Rental Service  Acquisitions of Baker Hughes Mining Tools, Rotex and Kolfor Plant  Agreement to sell the professional electric tool business to Techtronic Industries

4. October 22, 20044 Q3 - Figures in summary  Order volume up 6%  Operating margin at 15.4% (12.7)  Profit after financial items up 35% to MSEK 1 847 (1 368) –Negative currency effect MSEK 150  Earnings per share up 38% to SEK 5.86 (4.25)  Operating cash flow at MSEK 1 647 (1 702)  ROCE at 20% (16)

5. October 22, 20045 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

6. October 22, 20046 September 2004 Orders received - Local currency Group total +14% YTD (+15%, 3 months) Structural change +3% YTD (+7%, 3 months) +13+1740 +34+364 +8+735 +9+46 +49+753 +26+1612 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, %

7. October 22, 20047 September 2004 Q3 - The Americas  Demand improved in North America –Increased demand from manufacturing and process industries –The important non-residential construction activity started to improve and other construction activities continued to grow –Very strong demand from the mining industry  Strengthened demand in South America B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, % +13+1740 +34+364

8. October 22, 20048 Q3 - Europe and Africa/Middle East  Steady improvement in Europe –Good demand for equipment and aftermarket products from manufacturing and process industries –Demand from construction industry leveled off  Demand development slightly positive in Africa/Middle East September 2004 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, % +8+735 +9+46

9. October 22, 20049 Q3 - Asia and Australia  Continued growth in Asia –Reduced growth in China –Very strong growth in India  Another quarter of positive development in Australia September 2004 B CA A= Portion of Group sales last 12 months, % B= Year-to-date vs prev. year, % C= Last 3 months vs prev. year, % +49+753 +26+1612

10. October 22, 200410 –Change in orders received in % vs. same Quarter previous year Volume Growth per Quarter

11. October 22, 200411 Group Total Sales Bridge

12. October 22, 200412 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

13. October 22, 200413 Compressor Technique  Continued strong demand, order volume up 7% –Growth in all regions for industrial stationary compressors –Aftermarket and specialty rental business continued to increase steadily  Acquisition of Kolfor Plant –Specialized service and rental company targeting the oil and gas industry  Operating profit margin above 19% –Volume, price and efficiency improvements. Currency impact less pronounced than in recent quarters

14. October 22, 200414 Compressor Technique %

15. October 22, 200415 Rental Service  Non-residential construction activity started to recover  Rental revenues increased 11% in USD –Price +7%, volume +4%  Fleet utilization rate at all-time-high at 70%  Profitability improved to record level –Operating margin at 19.2% (10.2) –Return on operating capital at 16%

16. October 22, 200416 U.S. Construction October 1, 2004 Statistics until August 2004

17. October 22, 200417 Rental Service % Rental Revenue Volume Development

18. October 22, 200418 Industrial Technique  Order volume up 6% –Strong growth for industrial tools in all major customer segments. Highest growth recorded in North America –Modest volume increased for professional electric tools  Record operating margin at 12.4% (10.0)  Agreement to sell the professional electric tool business to Techtronic Industries for MUSD 713

19. October 22, 200419 % Industrial Technique

20. October 22, 200420 Construction & Mining Technique  Order volume growth 9% –Strong demand from mining industry. Volume growth in all product areas. –Good contribution from the acquired businesses, primarily Drilling Solutions –Slightly positive development for construction equipment  Operating profit margin 10.5%  Acquisition of Baker Hughes Mining Tools in the United States and Rotex in Finland

21. October 22, 200421 % Construction & Mining Technique

22. October 22, 200422 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

23. October 22, 200423 Income Statement

24. October 22, 200424 Balance Sheet September 30, 2004

25. October 22, 200425 Cash Flow

26. October 22, 200426 Capital Expenditures in Tangible Fixed Assets 2000 MSEK Quarterly 12 months Net rental fleet investment = MSEK 1 956 2004200120022003

27. October 22, 200427 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook

28. October 22, 200428 Near-term Outlook In North America, the non-residential construction sector is expected to improve and the demand from the manufacturing and process industries is foreseen to stay unchanged at the current favorable level. The overall demand in Western Europe is also expected to remain at the current level, while Eastern Europe still provides good opportunities for growth. The growth of demand in Asia is expected to continue, but at a slower rate compared to the most recent quarters.

29. October 22, 200429

30. October 22, 200430 Cautionary Statement  “Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially effected by other factors like for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and technological difficulties, supply disturbances, and the major customer credit losses.”

31. October 22, 200431 Contents  Q3 Business Highlights  Market Development  Business Areas  Financials  Outlook  Additional Information

32. October 22, 200432 Long Term Trend Excluding goodwill impairment charge in Q3 2002

33. October 22, 200433 Compressor Technique

34. October 22, 200434 Rental Service Excluding goodwill impairment charge in Q3 2002

35. October 22, 200435 Industrial Technique

36. October 22, 200436 Construction & Mining Technique

37. October 22, 200437 Return on Capital Employed 12 month values Excluding goodwill impairment charge in Q3 2002 20012002200320042000

38. October 22, 200438 Capital Structure Net Debt/Equity

39. October 22, 200439 Cash and Interest-Bearing Debt Net borrowings MSEK 8 386 Dec. 2003 Restated 9 223 September 2004 7 613 Dec. 2003 13 694 Dec. 2002 20 078 Dec. 2001

40. October 22, 200440